Foster Family Agency Insurance Crisis ‹ ColoradoBoulevard.net

Foster family (file photo – pennylane.org)

The insurance crisis gripping sectors of California has found a new target: foster family agencies in Los Angeles County.

Nonprofits Insurance Alliance of California (NIAC) is the insurance entity that covers 90 percent of all foster family agencies (FFAs) in California. Last month, they issued notices of non-renewal to 30 of the 46 FFAs based in Los Angeles County. Fourteen of these agencies, which provide respite care for approximately 500 children, will lose their insurance in the next 21 to 30 days and may be forced to close their facilities.

“There is no doubt in my mind that our foster care agencies are facing a catastrophic legal and fiscal cliff,” Supervisor Kathryn Barger said. “Reputable foster care agencies that have been in business for decades are struggling to find another insurer through no fault of their own. They face rates up to five times higher than what they are paying, which is completely unfair. Our county must do everything in its power to ensure uninterrupted care for children placed in foster care. Their stability is key.”

At its September __ meeting, the Los Angeles County Board of Supervisors voted unanimously to support a motion submitted by Supervisor Barger, co-authored by Chairwoman Lindsey P. Horvath, to urgently find short- and long-term solutions.

“Los Angeles County’s child welfare system relies on foster care agencies as key partners,” said Chairman Horvath. “We count on FFA to recruit and support people and families who open their hearts and homes to the children entrusted to us. It is vital that we do everything we can to protect them from exorbitant insurance rates so they can continue to do their vitally important work. FFA supports our children, and Los Angeles County intends to support them.”

The Los Angeles County legal team now has 15 days to work with the California Office of the Chief Executive Officer and the Department of Children and Family Services to report solutions to the insurance crisis to the Board of Supervisors. The proposal also instructs the county’s lobbying team to support state budget proposals that could provide a long-term solution to the insurance crisis facing FFA.

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